Question: Other things unchanged, a decrease in the legal reserve requirement will: a . decrease the quantity of free reserves b . signal the Fed's intention

Other things unchanged, a decrease in the legal reserve requirement will:
a. decrease the quantity of free reserves
b. signal the Fed's intention of pursuing a "tight money" policy
c. decrease the total reserves of the banking system
d. increase the size of the money multiplier
e. cause banks to lend at higher interest rates
Other things unchanged, a decrease in the legal

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